An import-export business follows a systematic process that makes it successful in each step. At Impexperts – the world of import-export, we help our registered candidates to learn and practically understand the import-export business flow for a better and smooth trading experience.
The first and primary process for starting an import-export business is company registration. You can always register the company separately from your existing business to help it achieve and attain a separate and international legal identity. The next important step is IEC code registration. Are you wondering how to register for IEC? Please click here to watch step by step process for obtaining IEC Code. In the case of the import business process, RCMC is mandatorily required.
Later, the keen import-export business owner must explore the possible import-export opportunities with product selection. Once you have selected your product, you must find potential buyers or suppliers for successfully importing or exporting your product. The last stage of the Import export process is transportation and logistics. Also, when the process is done, you must hire a CHA (Customs Housing Agent) to clear the port duties (either import or export).
What is the Import export process?
Goods exported from India goes through different channels. Shipment is transported through a multistage delivery system before it is handed over to the original buyer. Every individual shipment is registered in the book of records, including product description, company name, agency, transportation service, authorization from the legal bodies, and receivers document.
Therefore, understanding the basics of the export and import process is vital to becoming a master in international trade. Learn the exporting process using the below step-by-step guide and become a trained person who knows how to handle the shipment during the transition.
Stages of the export process
The export process step-by-step guide will help you to understand the entire export process from start to end. Learning about it will elevate your knowledge about the entire trading process.
Your journey starts with the establishment of the company. If you are an individual, you can start a sole proprietary company. Business partners can create and join ventures under a partnership firm. Get an attractive name that suits the nature of the business. Also, the company’s Logo would add immense value to your business. Once you are done with the essential structure development, you can move forward with the process of export.
Opening bank account
Every company has to register a current account to manage its financial activities. A current account will be used for all your financial support. Transactions of the company will be done through the current version. The company’s existing account will settle even the foreign exchange deal.
Permanent account number (PAN)
After successfully registering the company for the import and export process, you will be assigned a permanent account number (PAN). It is the registration number with the Income Tax Department. Every transaction you make under the PAN number must pay income tax according to the law. Hence, the PAN number is necessary to import or export the goods under the company name.
Importer Exporter Code (IEC) number
Business involves in international trade is mandatory to register the company to get the importer exporter code, also known as the IEC number. The exports and imports of goods are registered with the IEC number and systematically recorded in the books of account. It is an essential step in the import-export process. Without the IEC number, customs will not approve the shipment. Hence, the shipment will get stuck at the customs authority or return to the seller.
Registration cum membership certificate (RCMC)
RCMC certification provides authorization to import-export companies with government benefits applied to a specific product. Attaching the RCMC certificate to trading activities will enroll you for the concession on various occasions. You will have support from the Indian Export promotion councils, FIEO, Authorities, and Commodity Boards. Also, the RCMC department will guide you to improve the exports.
After getting onboard, the next step is deciding the product you want to sell in the international market. Initiation of market research on product demand would provide sufficient data to evaluable to region. Remove the prohibited consequences and add them to the restricted list to ensure you do not involve a loss-making venture. Choose a product that has consistent demand in the international market.
Get involved in marketing activities to find buyers for the product. Submit your entries in the trade fairs, join the buyer-seller meets, signup on the B2B portals, and promote your company in exhibitions. Promoting your business at the trade fair gives you immense success because you will have exposure to the target audience. The government also organize a trade fair for the companies to promote their brand in the community.
Sending samples of your product to the customers is a critical part of the business. Buyers would appreciate getting a small piece to check the product quality. Once the sample product meets the expectation of the buyers, they will place more orders.
The cost of products sold in the market largely depends on demand and supply. During the high demand, the product receives an appreciated price. Thus, deciding the product’s price option is vital in the trading business. The buyer compares the price with the other options available in the market. They will prefer buying from different companies if they find cheaper options with similar quality products. You have to ensure the product is perfectly priced to get the maximum results for your efforts.
Once you master the export business process, you can raise your company’s bar efficiently.
Legal norms bind import and Export procedures. The company has to adhere to the procedure applied by the government. Different licensing procedures are applicable to ship the goods. Also, the goods should be transported from the safe transportation facilities to a warehouse near the custom. Once you receive customs clearance, the goods are sent to the destination through the mode of transport chosen by the seller.
Outline of the importing process
Get the Import export code (IEC) number from the regional office of DGFT. A company dealing in international trading has to obtain the code to maintain the smooth functioning of the trading business. Authority approves the IEC register companies to deal in various products. PAN-based registration of traders is offered to the companies with lifetime validity for the certificate.
Comply with legal procedure
Businesses must comply with the legal procedure while importing goods from foreign countries. Also, restrictions on importing certain goods should be considered when dealing with international sellers; otherwise, the goods will get stuck at customs or may be returned to the sellers. Foreign trade policies are updated regularly; thus, stay updated about them to avoid challenges during trading.
Procure import licenses
The commercial product would need an official license to import from the other country. The importer must classify the product’s name and usage in the local market before getting permission to import the product. Production description should be according to the Harmonized System of Coding or ITC (HS) classification.
Submit bill of entry and important documents at customs
Import license would be the entry ticket to the customs. You have to submit the vital documents to get clearance from customs. Bill of entry, product information, company registration, IEC certification, PAN, and BIN number to comply with the law under Section 46 of the Customs Act (1962). Bill of entry provides information about the nature of the produce, quantity, and actual value of the goods received or sent through custom.
Import duty rates
Products imported to India will have different import duty rates. The rates are determined based on the government policies applied to specific products, local consumers’ safety, restricted products, etc. On top of that, particular duties are added under the anti-dumping duty. So you should be aware of the government policies applied to the different products before importing.
What is the import?
Import is the way to bring goods or services from a foreign country to the local market. Imported goods are used to fulfill the need of the customers. The government regulates the import of goods to prevent access to food brought from abroad at a cheaper rate. Many restrictions are applied to reduce the import of certain agricultural goods to support the local producers.
Cha import export
Indian customs house agents are also known as CHA agents. They have licensed personnel who support local companies and individuals in dealing with import or export transactions. Cha also maintains the details of the product imported and exported from the customs. Any business involved in the import or export takes the help of the Cha agent to get clearance at the customs station. Cha in export plays a critical role because it supports the smooth functioning of the business.
Import-export procedures are well organized in India. Proper documentation is required at all stages, so the company involved in exporting has to adhere to government rules and policies.
For more information on the import-export process, Call US:- +91 9211066888